NUPRC Lists 50 Oil Blocks, Slashes Signature Bonus to $7m

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As registration for the 2025 licensing round continues, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has listed 50 oil blocks covering onshore, shallow water, and deep offshore areas.

The Commission, which launched the 2025 licensing round on December 1, announced a slash of signature bonus to between $3 million and $7 million as approved by the Minister of Petroleum Resources to reduce entry barriers and attract investors.

“All Bidders shall be required to submit a bid within a range of $3 million and $7 million as approved by the Minister of Petroleum for the reduction of entry barriers,” the Commission stated on its website, clarifying issues surrounding the 2025 licensing round.

This is a significant cut from $10 million that bidders paid during the 2024 exercise.

Pinnacle Daily reports that, ahead of the 2024 Oil Licensing Round, President Bola Tinubu had approved a reduction of the signature bonus paid by successful bidders from around $200 million previously to $10 million to remove the front entry barrier in the Nigerian oil sector.

A signature bonus is a non-refundable payment made by a contractor to the government upon signing a contract. Individuals who get oil assets are expected to pay the government a signing bonus.

The Commission said winners of the licensing round will be awarded a Petroleum
Prospecting Licence (PPL), which confers the following rights to the holder:

“I. Exclusive right to drill exploration and appraisal wells.
“II. Non-exclusive right to carry out petroleum exploration operations within the area provided for in the licence.
“III. Right to carry away and dispose of crude oil or natural gas won or extracted during the drilling of exploration or appraisal wells as a result of production tests.
“IV. The Licence is for an initial duration of 3 years, with a possible extension of another 3 years for onshore and shallow waters, while it is 5 years for deep water and frontier.”

According to the NUPRC, the oil blocks are listed below:

PPL 2A29; 2. PPL 2A30; 3. PPL 2A31; 4. PPL 2A32; 5. PPL 2A33; 6. PPL 2A34; 7. PPL 2A35; 8. PPL 2A36; 9. PPL 2A37; 10. PPL 2A38; 11. PPL 2A39; 12. PPL 2A40; 13. PPL 2A41; 14. PPL 2A42; 15. PPL 2A43; 16. PPL 2A44; 17. PPL 2A45; 18. PPL 2A46; 19. PPL 2A47; 20. PPL 2A48; 21. PPL 2A49; 22. PPL 2A50; 23. PPL 2A51; 24. PPL 2A52; 25. PPL 2A53; 26. PPL 2A54; 27. PPL 2A55; 28. PPL 2A56; 29. PPL 2A57; 30. PPL 2A58; 31. PPL 2A59; 32. PPL 2A60; 33. PPL 2A61; 34. PPL 2A62; 35. PPL 2010; 36. PPL 307; 37. PPL 308; 38. PPL 309; 39. PPL 900; 40. PPL 901; 41. PPL 902; 42. PPL 903; 43. PPL 700; 44. PPL 701; 45. PPL 702; 46. PPL 703; 47. PPL 800; 48. PPL 801; 49. PPL 802; 50. PPL 803;

The upstream regulator highlighted eight broad objectives of the 2025 Licensing Round, which include:

To grow Nigeria’s oil and gas reserves.
II. To enhance Nigerian content development.
III. To attract Foreign Direct Investment (FDI).
IV. To contribute to a long-term global energy sufficiency.
V. To boost Nigeria’s oil and gas production.
VI. To expand the opportunity for gas utilization.
VII. To create job opportunities, and
VIII. To create value for the Nigerian government and investors.

Licensing Round Timeline and Bid Process

The Commission explained that the licensing round process will be done within eight months, beginning on the 17th of November 2025 and ending on the 17th of July 2026, after the commercial bid conference.

The Commission said it has adopted a two-stage bidding process for the award of the Blocks: a qualification stage and a bid stage.

“The qualification stage involves the submission and evaluation of applications by interested parties or consortia in accordance with the Regulation and the Guidelines.

“Applicants shall provide all information required for this stage. Only applicants who are adjudged qualified and subsequently shortlisted by the Commission shall proceed to the Bid Stage, and will be required to execute a Confidentiality Agreement prior to participation.
“At the bid stage, shortlisted applicants or bidders shall submit their Technical and Commercial Bids in accordance with the Regulation, the Guidelines, and any other bidding documents issued by the Commission.”

Minimum financial requirement for participation in licensing round

NUPRC stipulated that the minimum financial requirement for any firm applying to participate in the 2025 licensing round includes an annual average turnover of $100 million for deep offshore blocks and $40 million for onshore and shallow water blocks; or a Minimum Cash in bank of $100 million for deep offshore and $40 million for onshore and shallow water blocks; or Bank Guarantee to the tune of $100 million for deep offshore and $40 million for onshore, and shallow water blocks.

The NUPRC reassured its commitment to transparency, fairness competition during the bid process.

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Victor EZEJA

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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.